Based on history, it’s an open question if it will clear those benchmarks, or if combining two average fund families can make an above-average one.Īssessing the influence of today’s technology giants. The purchase price could go up if Putnam hits various targets. Its average star rating is 2.87 and its average manager tenure is 10.3 years.įranklin will pay for the deal mostly in shares of Franklin Templeton stock, and Great-West will remain a 6.2% owner of Franklin and send it some insurance assets to manage after the transaction closes. That does not guarantee there will be no manager changes or fund mergers, but it lowers the odds.įranklin also receives an Average Parent rating. Rather, Franklin tends to leave the strong performing units alone and make subtle tweaks to processes at those that are struggling. It doesn’t often merge funds or dismiss fund managers to cut costs or improve performance. Historically, Franklin has allowed its acquired firms a fair amount of autonomy. Most recently the San Mateo, CA-based firm swallowed Legg Mason. Source: Morningstar Inc.įranklin Templeton has been an acquisitive colossus. Average manager tenure hovers just under 11 years.ĭata as of May 31, 2023. It has an average star rating of 2.98 and Morningstar gives the firm an Average Parent Pillar rating. Overall, the firm has been lackluster in the Reynolds era, which began in 2008. Since venturing into ETFs in 2021, more than half of the firm’s ETFs have less than $50 million in assets. Putnam under Reynolds launched absolute return funds in 2008 and alternative strategies in 2017 but merged away all of them owing to anemic performance and asset growth by the first half of 2023. Putnam currently manages $136 billion in assets (including non-mutual fund assets), but the firm that was one of the top five mutual fund families in 2000 now ranks 36th after seeing steep outflows in 18 of the 23 calendar years since.ĭata as of March 31, 2023. The fund family continued to contract, though, despite launching several novel strategies over the years and venturing into exchange-traded funds more recently. At the time, the fund family had been shrinking for several years and Putnam CEO Bob Reynolds and his executive team had hoped the deal would help stop the slide. Great-West paid US $3.9 billion to buy Putnam from insurance broker Marsh & McLennan MMC in 2007, when the Boston-based fund family had $191 billion in assets.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |